Uninor Achieves Breaks-Even in Five Telecom Circles

Uninor, the Indian arm of Norway’s telecom major Telenor today announced that it has achieved operating break-even in two more telecom zones – Uttar Pradesh (West) and Bihar and Jharkhand and now the company in breaks-even in five out of its six operating circles in India.

Uninor1

Uninor has also announced that it will continue to offer tariffs that are cheaper than those of its competitors in its operating circles – Sabse Sasta will continue. Uninor has now achieved its EBITDA break-even in the circles of UP West, UP East, Bihar (and Jharkhand), Andhra Pradesh and Gujarat. The Maharashtra and Goa circle too is well on its way to achieve this milestone within the committed time frame of calendar 2013.

Uninor had to shut-down its mobile service operations in India after its operating permits in 13 telecom zones were quashed by the Supreme Court order. In November last year, the company had secured fresh licences for six telecom circles — Andhra Pradesh, Uttar Pradesh East, Uttar Pradesh West, Bihar, Gujarat and Maharashtra, in the recently closed auction of 1800 MHz spectrum.

This Article Was Written By: Sanjay Bafna

Sanjay Bafna - National Editor (Telecom and Mobile Phone)

Sanjay Bafna is an entrepreneur and National Editor at TelecomTALK covering Mobile Operators, 3G, Broadband, 4G, LTE, Telecom Policies & Regulations and Mobile Phones. He is well known Telecom and Mobile Analyst, Love Tea and Chocolates.

{ 26 comments… add one }

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  • Sabyasachi November 18, 2013 7:35 pm, 7:35 PM

    me too miss uninor in west bengal and orissa……

    Reply
  • samrat paul November 13, 2013 7:21 am, 7:21 AM

    ekbar facebook par add dal k daklo kon kon chata hya ki uninor back kare west bengal may.(I MISS U UNINOR)

    Reply
  • shauvik September 28, 2013 8:26 am, 8:26 AM

    i wish uninor once again come back in west bengal… i really miss this network…

    Reply
    • Sutripta Roy November 8, 2013 12:27 am, 12:27 AM

      Yeah! West Bengal and Kolkata really miss Uninor. Though Aircel has fulfilled the need of Uninor.

      Reply
      • samrat paul November 13, 2013 7:19 am, 7:19 AM

        yes.plz back in to west bengal.

        Reply
  • John Thomas September 26, 2013 8:54 pm, 8:54 PM

    I miss this network heavily in Keralam…good network and best one.

    Reply
  • Amit Sarkar September 20, 2013 4:25 pm, 4:25 PM

    What are they thinking about West Bengal ?

    Reply
  • Arun September 20, 2013 11:17 am, 11:17 AM

    @Saurabh
    Thank you for ur valuable reply.I read your comments on previous posts in TT.Those comments are valueble for me and helped me a lot.I like your comments more than any one in TT.

    Reply
  • Aditi September 20, 2013 10:46 am, 10:46 AM

    I heard that their financial reporting is different from other operators. They do not include costs like licence buying etc in their circle finances. Is that true?

    Reply
  • Saurabh September 20, 2013 10:04 am, 10:04 AM

    @Sachin, Even Aircel and Videocon has reduced data in their 2G packs. Aircel is now providing only 1GB @ 98 in most of their operational circles. Videocon bring it down to 1.25GB in Rs.96 and also the validity of 109-2GB pack is halved to 30 days. VTL introduced new pack 147- 3GB – 28 Days in all their 4 circles. But in Rs.199 pack they are giving Rs.199 main balance and Unlimted Internet for 28 days with day FUP at 4GB.

    Reply
    • gaurav September 22, 2013 6:44 pm, 6:44 PM

      @saurav Rs.199 plan is over. Now Rs.197 exists which gives 197 TT + 1.5 Gb data for 4 weeks

      Reply
      • gaurav September 23, 2013 5:16 pm, 5:16 PM

        & Rs.147 plan validity is 42 days.

        Reply
  • sachin September 20, 2013 2:18 am, 2:18 AM

    Uninor has increased the prices of gprs in maharastra & goa circle last month. Uninor will suffer in long with this price rise because they dont have 3G licence and other operators have started providing 3G and 2G for same price.

    Reply
  • Arun September 19, 2013 7:49 pm, 7:49 PM

    @Saurabh
    Which is the best os.
    Android or windows phone?

    Reply
    • Saurabh September 20, 2013 10:01 am, 10:01 AM

      @Arun, It is more of a personal choice and depends on what you really want from a phone? If you go by trend then Andro based phones should be your choice. But personally I like Windows based phones. Especially the Lumia phones. So if you were to take my advice. Go for any Nokia Lumia phone based on Windows Phone 8 platform. Beside this I’m still a big Nokia fan. Nokia brings magic to whatever platform they work upon. If they had adopted Andro, they would have produced best Andro-based handsets in the industry. Andro is not my choice as I don’t find it to be a stable OS.

      Reply
  • Arun September 19, 2013 7:16 pm, 7:16 PM

    @Sourabh
    Which is the best os..Android or windows phone?
    plz reply.

    Reply
  • suraj September 19, 2013 5:17 pm, 5:17 PM

    what we means? achieved operating break-even in
    two more telecom zones – Uttar
    Pradesh (West) and Bihar ? Explain pls

    Reply
    • Saurabh September 19, 2013 7:25 pm, 7:25 PM

      @Suraj, If I start explaining the whole method to calculate, it will take me two hours to type as there are numerous factors that needs to be determined. You simply understand that Uninor has now recovered the cost they invested for their fixed assets and other expenses and will become profitable in next few months. :)

      Suppose I make a product X. the fixed cost I bear is Rs.1 crore. The selling price of X per unit is Rs.1000 and variable cost is Rs.800. So in order to achieve break even, I will have to sell 50,000 units of that product X. After that I will make profit of Rs.200 per unit sold in case no further investment is made that can shoot up fixed as well as variable cost. But these are all estimates. You can’t have calculations of every single penny spend and made. I hope you get my point.

      Reply
    • Saurabh September 19, 2013 7:29 pm, 7:29 PM

      Forgot to tell that breakeven point in my example will be Rs.5 crore. :) So Uninor has or is made enough money by selling products to reach break-even.

      Reply
    • Akhil Mohan September 20, 2013 8:51 pm, 8:51 PM

      In simple terms its no profit or loss situation. Not necessarily income =expenses because expense includes initial investments also.

      Reply
  • Saurabh September 19, 2013 3:52 pm, 3:52 PM

    It can make way for the company to participate in future auctions to get spectrum in more circles. :) Videocon’s Bali has also suggested participation in next auction for spectrum in more circles.

    Reply
    • Rama September 19, 2013 5:50 pm, 5:50 PM

      @Saurabh
      When are their license gonna expire and which telecom operators will be taking part in the upcoming 2014 900mhz spectrum auction and will uninor take part in the 1800mhz auction of 2014.

      Reply
      • Saurabh September 19, 2013 7:08 pm, 7:08 PM

        @Rama, It’s tough to say who gonna participate at this moment but yes if spectrum in 900 MHz is put on auction, AVoId will do participate as they have to retain it. The Delhi, Mumbai and Kolkata are the circles where spectrum in 900 MHz band will be put on auction in coming months. For other circles license expiry date is between 2016-2021 so they will come later. Participation of Uninor is more expected in 1800 MHz band then in 900 MHz because of the price factor and company has no plans to go Pan-India. If their pocket allows them, they will chose the circles where they had operations and were making money. Kolkata will be on their cards as base price is too less now.

        As far as Reliance Jio is concerned, I don’t expect them to go for 900 MHz. They will rather keep money for 700 MHz spectrum auction in 2015. For now they will concentrate on BWA with spectrum in 2300 MHz. AvoId is sure because they will not want to lose their spectrum and this thing can really shoot the price up. RJIL in case participates, it will be more of a strategy to make the spectrum cost high for others (rivals) i.e AVoId. There is a lot of spectrum that will be put on auction in 1800 MHz band, so its prices will not go drastically up.

        Beside this those companies who are interested in LTE on 1800 MHz spectrum band like Videocon will either go for more spectrum or fresh spectrum in new circles. Vodafone/Idea on the other hand don’t have 4G spectrum and they will look to have spectrum in 1800 MHz band for LTE-1800 purposes.

        But these are all my assumptions. Don’t take them seriously. Only time will tell the real picture. :)

        Reply
        • Rama September 19, 2013 8:59 pm, 8:59 PM

          @Saurabh
          Is the entire slot of the 900mhz band up for auction in 2014.Are the licenses in 900mhz band of all the existing operators like loop,aircel gonna expire in 2014.Why would reliance not participate in the 900mhz auction

          Reply
    • Mayank Bajaj September 19, 2013 6:51 pm, 6:51 PM

      It means that have recovered all the money that they invested in those circles.

      Reply
  • Sreenudulla September 19, 2013 2:45 pm, 2:45 PM

    Uninor really rockz with it’s offers in Andhrapradesh. The lowest Tariff For both On- net and off- net calls in Andhrapradesh

    Reply

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